7 Factors That Affect a Home Appraisal

An appraisal is an important part of homebuying. It determines the property’s value before a lender will agree to a mortgage. How is that value calculated? Here are seven factors that can impact the home’s value during an appraisal.

Condition of the home

First, the appraiser will note some of the general details of the home, ranging from the materials used throughout the house to the property’s overall condition. The appraiser will note any unsafe or unsound items in the home. Signs of neglect can negatively affect the home’s worth, from broken appliances to missing roof shingles. Infestations are another thing that appraisers will look out for. The home’s value could be positively affected by upgrades to its roof, electrical system, and windows.

Age of the home

The appraiser will consider the age of the home when calculating its value. You shouldn’t expect that a home older than it is will be valued higher because of its age. Newer homes are more likely to be in good condition and require less maintenance. However, older homes that are located in historic areas tend to have higher appraisal values.


The amount of living space inside a home will influence the property’s overall value, and a larger home will typically be worth more than a smaller home in the same market. The square footage of a home will be taken into consideration, as well as the number and quality of the bedrooms and bathrooms. Storage space is also important as larger closets and a basement will increase a house’s value.


A home’s location could impact its value based on several factors, including crime rate, school district, road maintenance, and the distance between the house and schools, hospitals, fire stations, and police stations. It may have a lower value if the home is located next to a hazardous neighboring property such as a landfill. The value of the home may also be affected by its location in the neighborhood. A house on a quiet street may be more valuable than one on a busy street in the same area.


If a home has received upgrades since its last appraisal, renovations like a new garage or kitchen makeover can impact its value. A new roof or energy-efficient appliances can also increase the home’s worth.

Comparable homes in the area

An appraiser will compare the home to others recently sold or those in the market in the area that are similarly sized, with comparable features and number of rooms. To get an idea of what your home is worth, you can look at similar homes in the same area.

Market conditions

The overall state of the real estate market in the area will also play a role. The home might be appraised at a higher value if there is a high demand in the area. The house’s value may drop if there is less demand.

Check out this blog to learn more about the ins and outs of the home appraisal process.

Read More